Computer-aided process of funding, including a private constant dollar instrument

ABSTRACT

A method using a computer system, and a computer system, computing tiered constant dollar instruments to finance a transaction. The method can include associating, with a computer system using input data, a first tier of one or more constant dollar financial instruments that do not finance a transaction and a second tier of one or more constant dollar financial instruments financed by the first tier that do finance the transaction, in producing output to implement the transaction.

I. PRIORITY

The present patent application is a continuation-in-part of U.S. patentapplication titled “COMPUTER-AIDED PROCESS OF FUNDING, INCLUDING APRIVATE DOLLAR INSTRUMENT,” Ser. No. 10/957,399, filed by the sameinventors on Oct. 1, 2004, and hereby incorporated by reference.

II. TECHNICAL FIELD

The technical field is computers, computer-aided methods, and dataprocessing systems, as illustrated more particularly herein. Exemplaryembodiments include, depending on the implementation, apparatus, amethod for funding, and corresponding products produced thereby, as wellas data structures, computer-readable media tangibly embodying programinstructions, computer-generated documentation, manufactures, andnecessary intermediates of the foregoing.

III. BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is an illustration of an embodiment.

FIG. 1A is an illustration of an embodiment;

FIG. 2 is an illustration of a flow chart for an embodiment.

FIG. 2A is an illustration of a flow chart for an embodiment.

FIG. 2B is an illustration of a flow chart for an embodiment.

FIG. 2C is an illustration of a flow chart for an embodiment.

FIG. 2D is an illustration of a flow chart for an embodiment.

FIG. 2E is an illustration of a flow chart for an embodiment.

FIG. 3 is an illustration of a flow chart for an embodiment.

FIG. 3A is an illustration of a flow chart for an embodiment.

IV. MODES

As used herein, the term “computer” generally refers to hardware orhardware in combination with one or more program(s), such as can beimplemented in software. Computer aspects can be implemented on generalpurpose computers or specialized devices, and can operate electrically,optically, or in any other fashion. A computer as used herein can beviewed as at least one computer having all functionality or as multiplecomputers with functionality separated to collectively cooperate tobring about the functionality. Logic flow can represent signalprocessing, such as digital data processing, communication, or asevident from the context hereinafter. Logic flow can be implemented indiscrete circuits. Computer-readable media, as used herein can compriseat least one of a RAM, a ROM, A disk, an ASIC, and a PROM. Industrialapplicability is clear from the description, and is also stated below.

By way of the following prophetic teaching, there is provided computersupport, as in a data processing system, for implementing funding. Saidcomputer support for this computer-aided method of funding may beimplemented by one computer system or it may be implemented by multiplecomputers that may be connected or networked together in an ongoingmanner, intermittently, or one time. If implemented by more than onecomputer, the system may include at least one from a group including,but not limited to: a financial intermediary computer; a depositoryinstitution computer; a commercial bank computer; a credit unioncomputer; an insurance company computer; a pension fund computer; afinance company computer; a leasing company computer; an investmentcompany computer; a mutual fund computer; a real estate investment trustcomputer; a special purpose entity computer; a real estate mortgageinvestment conduit computer; a trust computer; a limited liabilitycompany computer; a partnership computer; a corporation computer; aservicing computer; a reporting computer; a broker computer; a tradingcomputer; a clearing computer; a rating agency computer; an investmentbanker computer; a mortgage banker computer; a user of funds computer; asupplier of funds computer; and an other computer.

A servicing computer may be any computer that is servicing any financialinstrument in any of the plurality of tiers of instruments. A brokercomputer may be the computer of a mortgage broker, a securities broker,a broker/dealer, and/or a broker's broker. Other computers that might beconnected at some time and thus participate in the computer-aided methodof funding include, but are not limited to: a business computer, anonfinancial corporation computer, a financial institution computer, aconsumer computer, a household computer, a student computer, aneducational institution computer, a religious institution computer, acharitable institution computer, an academic computer, a researchercomputer, a foreign investment-creating computer, a foreign servicingcomputer, a foreign investment banker computer, a foreign mortgagebanker computer, a foreign trading computer, a foreign broker computer,a foreign rating agency computer, a foreign reporting computer, aforeign investment manager computer, a foreign investment advisorcomputer, a foreign bank computer, a foreign insurance computer, aforeign pension fund computer, a foreign clearing computer, a foreigninvestor computer, a foreign accounting computer, a foreign issuercomputer, a foreign financing company computer, a foreign leasingcompany computer, a foreign business computer, a foreign nonfinancialcorporation computer, a foreign financial institution computer, aforeign business computer, a foreign consumer computer, a foreignhousehold computer, a foreign student computer, a foreign educationalinstitution computer, a foreign religious institution computer, aforeign charitable institution computer, a foreign academic computer,and/or a foreign researcher computer.

If the computer-aided method of funding does involve more than onecomputer, the computers that may be part of the computer system mayconnect into the system on a continuing basis, intermittently, or on aone-time basis. Any computer that may be involved, regardless of whetherone or more is involved, may be in any form or combination, including,but not limited to: a mainframe computer and terminal(s) configuration,a client/server computer configuration, a configuration comprised of apersonal computer, a desk-top computer, a lap-top computer, a pocketcomputer, a palm computer, a personal digital assistant, a digital cellphone or other portable device, but other ways of thinking, embodimentscan extend to comprising a Wi-Fi node, an embedded processor, a car orother vehicle computer, a light-wave computer, a biological or hybridcomputer, a quantum computer, etc.

If more than one computer is involved, the computers may be connected,or not connected, in any pattern. The connections need not becontinuously maintained; they may be intermittent, one-time or ongoing.One or more of these connections may involve the use of the Internet, anintranet, e-mail, instant messaging, text messaging, voice mail, a localarea network (LAN), a wide area network (WAN), a twisted pair of copperwires, a coaxial cable, a cellular network, Wi-Fi, wide area Wi-Fi, aWi-Fi network, a light-wave transmission, infrared, and/or a wirelessconnection. One of more of the connections may involve one-waycommunication only. One or more may involve two-way communication. Realtime communications are another possibility.

More than one of any variety of computer may be involved in thecomputer-aided method of funding. For example, there may be more thanone user of funds computer, more than one supplier of funds computer,more than one broker computer, etc.

Private constant-dollar financial instruments can be financinginstruments issued by (i.e., they are liabilities of or interests in)funds users who are subject to default risk, including (but not limitedto): individuals, households, for-profit businesses, corporations,partnerships, limited partnerships, sole proprietorships, financialintermediaries, depository institutions, banks, credit unions, thrifts,savings and loans, savings banks, insurance companies, investmentcompanies, real estate investment trusts (REITS), limited-liabilitycompanies, not-for-profit businesses, nongovernmental organizations,trusts, real estate mortgage investment conduits (REMICS), otherpass-through entities, municipal governments (state and localgovernments), agencies of municipal governments, school districts, waterdistricts, transportation districts, other special purpose districts,and federally sponsored enterprises (e.g., Federal National MortgageAssociation, Federal Home Loan Mortgage Corporation, etc.). The issuersof private constant-dollar financial instruments may be domiciled in theU.S. or in other countries.

Unlike the federal government, the issuers of private constant-dollarfinancial instruments do not have the power to print money. Therefore,unlike securities issued by the national or federal government, privateconstant-dollar financial instruments are subject to default risk andthis default risk may be reduced by matching the payments promised bythe instruments to the expected future revenues of the issuer. The fixedreal (purchasing power) payments of the private constant-dollarfinancial instruments can be tailored to produce a reasonable, or eventhe best possible, match between promised real payment amounts and theexpected future real revenues of the issuer, thus reducing the defaultrisk relative to alternative instruments which do not have fixed realpayments and cannot, therefore, be tailored to produce a reasonable, oreven the best possible, match between promised payments and expectedfuture real revenues.

Note that the use of the U.S. government is illustrative, as the conceptapplies equally well to other governments that have the power to printmoney.

Constant-dollar financial instruments are financial instruments whoseterms (e.g., payment amounts, rate of return or interest rate, scheduleof remaining principal balances, etc.) can be specified in units ofconstant purchasing power, such as dollars that have been adjusted usingan index such as a price index (for example, one of the variations ofthe Consumer Price Index) so as to maintain constant purchasing power.However, the term “constant-dollar financial instrument” can apply tofinancial instruments whose terms are specified in units that are heldconstant in purchasing power and/or are adjusted through the applicationof some suitable index.

The units that are held constant in purchasing power and/or are adjustedby an index may be any currency (not just dollars) and they may be heldconstant and/or adjusted by any desired price index or other economicindex. Said currency may be any national currency (e.g., U.S. dollars,Canadian dollars, Australian dollars, Mexican pesos, British pounds,Swiss francs, euros, yen, rubles, zlotys, Danish kroner, etc.) or anyother variety of currency including private and/or local currencies.Possible varieties of said price or other index may include, but are notlimited to: 1) a price index for the respective national economy as awhole (e.g., in the U.S., the consumer price index for all urbanconsumers, the gross domestic product deflator, etc.); 2) a price indexfor some component of the respective national economy (e.g., a healthcare price index, a housing price index, a commodity price index, anindex made up of a single price such as the price of gold or the priceof oil, an export price index, an import price index, a traded goodsindex, a wholesale price index, a goods price index, an electronic goodsprice index, a services price index, the consumer price index for aspecified urban area, the consumer price index for a specified region,etc.); 3) an economic index for the respective national economy as awhole (e.g., in the U.S., the nominal gross domestic product, the realgross domestic product, productivity, nominal wages, real wages, totalnominal labor compensation, total real labor compensation, etc.); and,4) a local or regional economic index (e.g., regional nominal grossdomestic product, regional real gross domestic product, regionalproductivity, regional nominal wages, regional real wages, etc.)

This context for the term “constant-dollar financial instrument” isapplicable herein, and private constant-dollar financial instruments maybe comprised of, utilize and/or be derived from one or more otherprivate constant-dollar financial instruments, where the term“constant-dollar financial instrument” applies to instruments whoseunits that are held constant may be any currency adjusted by any desiredprice index or other economic index.

Private constant-dollar financial instruments may or may not be“private” in the sense that the data regarding the instrument or theissuer is private. Indeed, in the case of a public issue of privateconstant-dollar financial instruments, federal and state securities lawsmandate extensive public disclosure of data regarding both thesecurities and the issuer of the securities.

Constant-dollar financial instruments may be converted into equivalentnominal-dollar financial instruments because payments presently are madein nominal dollars and because accounting, both for purposes ofreporting and for calculating taxes, is presently carried out in termsof nominal dollars. Two processes have been invented for performing saidconversion, both by an inventor of the present invention. The first isdisclosed in U.S. Pat. No. 5,237,500 and the second is disclosed in U.S.patent application Ser. No. 09/283,102, U.S. Pat. No. 6,760,710 B1, bothincorporated by reference herein. The U.S. patent application titled“MULTIPLE COMPUTER SYSTEM SUPPORTING A PRIVATE CONSTANT-DOLLAR FINANCIALPRODUCT” which was filed on Jul. 6, 2004 as a continuation in part ofU.S. Pat. No. 6,760,710 B1 is also incorporated by reference herein.

The present invention of a computer-aided method of funding, including aprivate constant-dollar financial instrument, may include the step ofconverting any of said private constant-dollar instruments into anequivalent nominal instrument.

The value of a private constant-dollar instrument may be impacted by avariety of factors, including but not limited to: 1) the credit qualityof the instrument; 2) the real return of the instrument; 3) thefrequency with which nominal currency amounts are adjusted by the index(i.e., the frequency of adjustment); 4) the index that is used to adjustthe nominal currency amounts; and, 5) the underlying currency (e.g.,U.S. dollars, euros, yen, pesos, etc.).

The value of a tier of financial instruments may be determined bydetermining the value of the instruments comprising the tier. Therefore,the present invention may include the steps of determining a value of atier responsive to: 1) credit quality of the instruments comprising thetier; 2) the real return of the instruments comprising the tier; 3) thefrequency of adjustment of the instruments comprising the tier; 4) theindex (or indices if more than one index) used to adjust the nominalcurrency amounts of the instruments comprising the tier; and, 5) theunderlying currency or currencies of the instruments comprising thetier.

Private constant-dollar financial instruments that hold purchasing powerconstant (by adjusting the nominal currency amounts by an agreed uponprice index) are distinguished from other private financial instruments(i.e., financial instruments that are not constant-dollar instruments)by their virtual elimination of inflation risk and their ability toreduce default risk. They may also reduce interest rate risk becausereal interest rates are less volatile than nominal interest rates.

Examples of private constant-dollar financial instruments include, butare not limited to:

-   -   1. Constant-dollar mortgages.    -   2. Constant-dollar construction loans.    -   3. Constant-dollar residential mortgages, where the mortgage or        deed of trust securing the note is a mortgage or deed of trust        on a 1 to 4 family residential property.    -   4. A constant-dollar reverse loan, including a constant-dollar        reverse mortgage which enables a consumer to tap the equity in        their residence by receiving payments of constant purchasing        power amounts, with the resulting constant-dollar loan being        repaid through the sale of the residence at some defined point.    -   5. Constant-dollar commercial mortgages, where the mortgage or        deed of trust securing the note is a mortgage or deed of trust        on commercial property including office, retail, industrial,        multi-family residential, and mobile-home properties.    -   6. Constant-dollar second mortgage or home-equity loans.    -   7. Constant-dollar second mortgage or deed-of-trust financing        for commercial properties.    -   8. Constant-dollar personal loans.    -   9. Constant-dollar auto loans.    -   10. Constant-dollar vehicle loans.    -   11. Constant-dollar loans to finance consumer durables.    -   12. Constant-dollar leases.    -   13. Constant-dollar leases to finance automobiles.    -   14. Constant-dollar leases to finance consumer durables.    -   15. Constant-dollar leases to finance boats or ships.    -   16. Constant-dollar leases to finance business property.    -   17. Constant-dollar leases to finance aircraft, aircraft        engines, airframes, combinations thereof, railroad rolling        stock, trucks, buses, trams, trollies or lorries.    -   18. Constant-dollar leases to finance real property.    -   19. Constant-dollar leveraged-leases where the lessor finances a        large portion of the purchase price of the asset with a        nonrecourse constant-dollar loan that is secured by a first        claim on the leased asset.    -   20. Constant-dollar business loans.    -   21. Constant-dollar term loans.    -   22. Constant-dollar notes.    -   23. Constant-dollar international lending contracts.    -   24. Constant-dollar bonds including bullets, serials,        zero-coupon and combinations thereof.    -   25. Constant-dollar fully-amortizing bonds.    -   26. Constant-dollar partially-amortizing bonds.    -   27. Constant-dollar bonds or loans or loans with any desired        amortization structure.    -   28. Constant-dollar bonds with sinking funds.    -   29. Constant-dollar private placement bonds.    -   30. Constant-dollar public issue bonds.    -   31. Constant-dollar medium-term notes, which are constant-dollar        bonds (that can be of any maturity, in spite of the name) that        are issued on a continuing basis over time rather than through        the batch process of traditional underwriting.    -   32. Constant-dollar debentures.    -   33. Constant-dollar subordinated debentures.    -   34. Constant-dollar capital notes.    -   35. Constant-dollar mortgage bonds.    -   36. Constant-dollar equipment trust certificates.    -   37. Constant-dollar asset-backed securities.    -   38. Constant-dollar mortgage-backed securities.    -   39. Constant-dollar preferred stock.    -   40. Constant-dollar fully-amortizing preferred stock.    -   41. Constant-dollar limited partnership units.    -   42. Constant-dollar preferred-return LLC (Limited Liability        Company) units.    -   43. Constant-dollar income bonds, where the issuing organization        makes the promised real (purchasing power) payment only if it        has income sufficient to make the payment. Payments that are not        paid may cumulate with or without compounding (payment of        interest on interest).    -   44. Constant-dollar deposits.    -   45. Constant-dollar certificates of deposit.    -   46. Constant-dollar Eurodollar deposits.    -   47. Constant-dollar currency, which is created when        constant-dollar deposits are made checkable and/or transferable        through electronic funds transfer means.    -   48. Constant-dollar insurance.    -   49. Constant-dollar whole life policies.    -   50. Constant-dollar universal life policies.    -   51. Constant-dollar variable life policies.    -   52. Constant-dollar annuities.    -   53. Constant-dollar fixed annuities.    -   54. Constant-dollar guaranteed investment contracts.    -   55. Constant-dollar municipal bonds.    -   56. Constant-dollar tax-exempt bonds.    -   57. Constant-dollar general obligation bonds.    -   58. Constant-dollar revenue bonds.    -   59. Constant-dollar double barrel bonds.    -   60. Constant-dollar instruments with variable real returns.    -   61. Constant-dollar instruments with caps and/or floors on the        equivalent nominal returns.    -   62. Constant-dollar instruments with caps or restrictions on the        nominal payment amounts.    -   63. Constant-dollar instruments with caps or restrictions on the        nominal balance amounts.    -   64. Constant-dollar instruments convertible into other        constant-dollar instruments.    -   65. Constant-dollar instruments that include options.    -   66. Constant-dollar instruments with the option to choose a        different (constant purchasing power) currency—e.g., constant        euros, constant yen, constant pounds, constant pesos, etc.    -   67. Constant-dollar instruments with the option to choose a        different index—e.g., a services cost index, a commodity cost        index, a gold price index, an oil price index, an energy price        index, etc.    -   68. Constant-dollar instruments convertible into common stock.    -   69. Common stock convertible into constant-dollar instruments.    -   70. Constant-dollar instruments with warrants attached.    -   71. Constant-dollar instruments convertible into nominal        instruments.    -   72. Nominal instruments convertible into constant-dollar        instruments.

The user of the funds (issuer of the constant-dollar instrument) may bedomiciled in U.S. and/or another country. The underlying currency mayU.S. dollars, Canadian dollars, Mexican pesos, British pounds, euros,yen, Australian dollars or any other currency. The instrument may offerthe investor and/or the issuer the option to choose from a list of oneor more currencies and/or one or more indices.

Private constant-dollar financial instruments may also include financialinstruments that are derived from one or more other privateconstant-dollar financial instruments. Possible examples of theseadditional possible private constant-dollar financial instrumentsinclude, but are not limited to:

-   -   1. Constant-dollar mutual fund shares, which are undivided        interests in the net assets of an open-end investment company        that invests predominantly in private constant-dollar financial        instruments.    -   2. Constant-dollar pass-through securities, which are undivided        interests in a pool of financial assets that are predominantly        private constant-dollar financial instruments.    -   3. Constant-dollar variable annuities, which are variable        annuities for which the investment portfolio for a variable        annuity is made up predominantly of private constant-dollar        financial instruments.    -   4. Constant-dollar separate accounts, which are separate        accounts of an insurance company that are invested predominantly        in a portfolio of private constant-dollar financial instruments.    -   5. Constant-dollar investment company shares, which are shares        in an investment company that invests predominantly in private        constant-dollar financial instruments.    -   6. Constant-dollar closed-end investment company shares, which        are shares in a closed-end investment company that invests        predominantly in private constant-dollar financial instruments.    -   7. Constant-dollar trusts, which are interests in trusts that        invest predominantly in private constant-dollar financial        instruments.    -   8. Constant-dollar unit investment trusts, which are unit        investment trusts that invest predominantly in private        constant-dollar financial instruments.    -   9. Constant-dollar pass-through securities issued by real estate        mortgage investment conduits, which are real estate mortgage        investment conduits that invest predominantly in private        constant-dollar mortgages.    -   10. Shares in constant-dollar real estate investment trusts,        which are real estate investment trusts that invest        predominantly in private constant-dollar financial instruments.    -   11. Constant-dollar swaps, which are swaps where one or more of        the payment streams involved in the swap is a payment stream of        a private constant-dollar financial instrument.    -   12. Constant-dollar pensions, which are pensions that pay fixed        purchasing power amounts.    -   13. Constant-dollar pension plans, which are pension plans that        invest predominantly in private constant-dollar securities.    -   14. Constant-dollar defined benefit plans, which are defined        benefit pension plans that invest predominantly in private        constant-dollar financial instruments.    -   15. Constant-dollar defined contribution plan, which are defined        contribution pension or retirement plans that invest        predominantly in private constant-dollar financial instruments.    -   16. Constant-dollar 401(k) or 403(b) plans, which are 401(k) or        403(b) plans that invest predominantly in private        constant-dollar financial instruments.    -   17. Constant-dollar Independent Retirement Accounts (IRAs),        which are IRAs that invest predominantly in private        constant-dollar financial instruments.    -   18. Constant-dollar Keoghs, UGMA, UTMA, Coverdell, Health        Savings Accounts, college savings plans, travel expense saving        account or other accounts designed or created to cover certain        expenses and may include tax incentives such as the ability to        invest with before tax dollars, defer taxes, eliminate taxes,        etc.    -   19. A constant-dollar futures contract, which is a futures        contract involving one or more private constant-dollar financial        instruments.    -   20. A constant-dollar currency futures contract, which is a        futures contract involving two constant-dollar currencies (e.g.,        constant dollars and constant euros, constant euros and constant        pounds, constant dollars and constant pesos, etc.).    -   21. A constant-dollar forward, which is a forward contract        involving one or more private constant-dollar financial        instruments.    -   22. A constant-dollar currency forward, which is a forward        contract involving two constant-dollar currencies (e.g.,        constant dollars and constant euros, constant euros and constant        pounds, constant dollars and constant pesos, etc.).    -   23. A constant-dollar options contract, which is an option        contract involving a private constant-dollar financial        instrument, a private constant-dollar future, a private        constant-dollar forward, or a private constant-dollar swap.    -   24. A constant-dollar derivative, which is a financial        derivatives contract involving a constant-dollar financial        instrument or product.

The term “tier” generally refers to a set of financial instruments. Aset of financial instruments is one or more financial instruments. Saidtier may be fixed (i.e., closed) or ongoing (open-ended).

A fixed, or closed, tier is defined by the fixed set of financialinstruments contained in the tier. A fixed tier may be completely fixedor it may allow (or, in some cases, require) some, some part, or all ofthe instruments in the tier to be replaced by other instruments subjectto specified qualifications, requirements, or limitations. A fixed tiermay have a finite life time defined by the life of the instruments thatit contains and/or the life of an other tier with which the tier isassociated.

A possible example of a fixed tier is a set of constant dollarmortgage(s) held by a real estate mortgage investment conduit (REMIC).Said set may include one or more constant dollar mortgages, saidconstant-dollar mortgage or mortgages being private constant dollarinstrument(s) that have been specified in the specifying step in thecomputer-aided funding process. Said specifying may include step ofdetermining various criteria for the origination or purchase of aconstant dollar mortgage, including a real return that is determinedusing market data that includes a market real interest rate.

This is a fixed tier as the specified set of constant dollar mortgage(s)will remain unchanged with the exception of substitutions that may beallowed or required by the agreements governing the operation of theREMIC. In a possible example, the agreements governing the REMIC mayrequire the entity that organized the REMIC (possibly an investmentbanker, a mortgage banker, a commercial bank or other financialinstitution) to replace a constant dollar mortgage that go into defaultwith one or more constant dollar mortgages that meet certain standardsand are not in default. This tier may have a finite life equal to thelife of the longest-lived constant-dollar mortgage contained in thetier.

In this possible example, a second tier in a plurality of tiers might bea tier of financial instruments that are the liabilities of the REMIC.This other tier may include constant pass-through securities, constantdollar mortgage-backed securities, an equity or high-yield piece, and/orother financial instruments.

This other tier is associated with the tier comprised of constant dollarmortgage(s) through the vehicle of the REMIC and this other tier,through this association, funds the one tier comprised of constantdollar mortgage(s). This funding of one tier by an other may involvedetermining, among other things, that: 1) the net sale proceeds of theother tier is sufficient to pay the costs of originating and/orpurchasing the constant-dollar mortgages contained in the one tier; 2)the cash flows of the constant-dollar mortgage(s) in the one tier arenot less than the cash flows of the financial instruments in the othertier; 3) the real return on the constant-dollar mortgage(s) in the onetier is not less than the real return on the instruments comprising theother tier; 3) the real returns on the instruments comprising the secondtier are, when evaluated using market data including a real interestrate, consistent with their required real return given their risk; 4)the splitting, by maturity and/or priority of claims, of the aggregatecash flows of the constant dollar mortgage(s) comprising the one tieramong the instruments among the instruments comprising the other tierprovides the lowest real cost of funding the one tier by the other; and,5) the real return on the equity or high-yield piece, if any, isconsistent with the required return given its risk.

The process of specifying the other tier may involve associating cashflow from the one tier comprising constant dollar mortgage(s) with theother tier. This process of associating may include, in the process ofspecifying the instruments comprising the other tier, the step ofcomputing aggregate cash flows of the one tier comprising constantdollar mortgage(s) to produce homogenous securities in the other tier. Apossible example of this process would be to aggregate the cash flows ofthe one tier comprising constant dollar mortgage(s) and to divide themequally among a number of constant dollar pass-through securitiescomprising the other tier. These constant dollar pass-through securitiescomprising the other tier would be homogeneous because each wouldrepresent an undivided interest in the cash flows produced by theconstant dollar mortgage(s) comprising the one tier. This homogeneitycreates liquidity for the constant dollar pass-through securities, thusenabling the other tier comprised of constant dollar pass-throughsecurities to securitize the one tier comprised on constant dollarmortgage(s).

Because each constant dollar pass-through security represents anundivided interest in the cash flows produced by the constant-dollarmortgage(s) comprising the one tier, each security would be identical interms of risk and maturity. However, different suppliers of funds(purchasers of the financial instruments comprising the other tier beingsuppliers of funds) may have different preferences regarding risk andmaturity. As a result, it may be possible to reduce the cost of fundingthe one tier comprised of constant dollar mortgage(s) with the othertier by disaggregating the homogenous securities comprising the othertier, splitting them by claims priorities and/or maturity times.

A possible example of this disaggregating homogeneous securities bysplitting would be to specify constant dollar mortgage-backed securitiesin the other tier. A splitting by maturity times might includespecifying a maturity schedule for the other tier comprised of constantdollar mortgage-backed securities. Said specifying may includeassociating a maturity of the constant dollar mortgage-backed securitiescomprising the other tier with a maturity of the constant dollarmortgage(s) comprising the one tier. A splitting by priority of claimsmight create a number of classes of instruments in the other tier. As apossible example: senior constant dollar mortgage-backed securities withfirst claim on the payments and principal of the constant dollarmortgages comprising the one tier; subordinated constant dollarmortgage-backed securities with second claim on cash flow and principal;junior subordinated constant dollar mortgage-backed securities withthird claim on cash flow and principal; and an equity or high-yieldpiece with last claim on the cash flow and principal of the constantdollar mortgages comprising the one tier.

The funding of the one tier comprised of constant dollar mortgages bythe other tier comprised of constant-dollar mortgage-backed securitiestransforms the liability of a user of funds into an asset of supplier offunds using said tiers. This transformation using said tiers may providebenefits to both suppliers and users of funds by: 1) creating liquidityfor suppliers of funds as a result of securitization; 2) providing avariety of real return/risk choices for suppliers of funds; 3) providinga variety of real return/maturity choices for suppliers of funds; and,4) increasing the availability of funds and reducing their cost forusers of funds.

Users of funds who may benefit from the funding created by theassociation of said tiers may include homeowners, investors in realestate and businesses owning real estate. Suppliers of funds who maybenefit from the funding may include, among others: households;investment companies; mutual funds; pension funds; depositoryinstitutions; commercial banks; credit unions, etc. To the extent thatthe suppliers of funds involved in the funding are financialintermediaries (investment companies; mutual funds; pension funds;depository institutions; commercial banks; credit unions, etc.), theresult is to involve one or more tiers intermediate that are not withinthe portion of said tiers that are associated in the funding. Forexample, the purchase of some of the constant-dollar mortgage-backedsecurities by a mutual fund that invests in constant-dollar securitiesinvolves in the funding a tier of constant-dollar mutual fund sharesintermediate that is not within the portion of said tiers that areassociated in the funding.

Documentation of the funding may be generated by a computer, or by morethan one computer. The computer system of the REMIC, or an othercomputer system such as the computer system of the entity that formedthe REMIC (e.g., an investment banker, a mortgage banker, a commercialbank, a finance company, a credit union, etc.) may generatedocumentation that may include documentation for one or more privateconstant-dollar instruments within any of said tiers, documentationregarding the sale, purchase and/or origination of any said instruments,etc.

An other computer system may be involved in generating documentation forone or more private constant-dollar instruments in any of said tiers. Apossible example is a REMIC formed by a finance company with the financecompany purchasing some or all of the constant-dollar mortgagescomprising the one tier from one or more mortgage bankers. Thedocumentation for the constant-dollar mortgages may be generated by themortgage banker(s) from which the finance company purchases themortgages. The finance company may engage the services of an investmentbanker to structure the constant-dollar mortgage-backed securitiescomprising the other tier, underwrite the securities and market thesecurities. The investment banker computer may then generate thedocumentation for the constant-dollar mortgage-backed securities.

The present invention may include the step of servicing any of saidconstant-dollar instruments in any of said tiers. Said servicing may beperformed by one computer or by more than one computer. In the possibleexample of a REMIC formed by a finance company, the servicing of aconstant-dollar mortgage in the one tier may be performed by thecomputer of a mortgage banker, the computer of the finance company, oran other computer or computers. The servicing of the constant-dollarmortgage-backed securities in the other tier may be performed by aservicing computer operated by a commercial bank or by an other computeror computers.

It may be that all of the constant-dollar mortgages comprising the onetier are in one currency (e.g., U.S. dollars) and that theconstant-dollar mortgage-backed securities comprising the other tier arein the same currency, determining a funding in only one currency.

It may be that one or more of the constant-dollar mortgages comprisingthe one tier are in a currency or currencies different from the currencyor currencies of the constant-dollar mortgage-backed securitiescomprising the other tier. As a possible example, the constant-dollarmortgages comprising the one tier may be in Mexican pesos (constant-pesomortgages) or in a variety of developing country currencies and theconstant-dollar mortgage-backed securities may be in U.S. dollars (oreuros or some combination of developed country currencies). If more thanone currency is involved in the funding, the funding may include a stepof determining a value of one or more tiers responsive to currency.

The present invention includes tiers that are ongoing, or open-endedrather than fixed. In an ongoing, or open-ended, tier instruments may beadded or removed over time. The size of the tier (as measured by thenumber of instruments, the principal amount of the instruments, etc.)may grow or shrink over time. There may or may not be restrictions,limitations, requirements, regulations, etc. which may limit, affect orotherwise determine the instruments which may be added or removed froman ongoing tier.

As a possible example, consider an ongoing tier of instruments that areassets of an insurance company. Regulators of the insurance company mayput forth regulations stating that any instrument added to the tier mustbe rated as “investment grade” with regard to credit risk. The insurancecompany may have a set of requirements, guidelines, etc. that furtherlimit or determine whether or not an instrument may be added to the tier(e.g., loan-to-value and debt coverage standards for commercial realestate loans).

In addition to an ongoing tier of instruments that are assets of theinsurance company, the insurance might also have an ongoing tier ofprivate constant-dollar financial instruments that are assets of aseparate account of the insurance company. Said tier may, depending onthe investment guidelines set by the insurance company, be comprised ofmore than one type of private constant-dollar financial instrument(e.g., constant-dollar corporate bonds, constant-dollar mortgages,constant-dollar mortgage-backed securities, constant-dollar asset-backedsecurities, constant-dollar preferred stock, etc.).

In this possible example, undivided interests in said separate accountmay comprise a tier intermediate within the portion of tiers that areassociated in the funding. The tier of private constant-dollarinstruments that are assets of the separate account may be funded byassociating said tier with a tier of constant-dollar insurance andannuity instruments sold by the insurance company, with tier ofundivided interests in said separate account intermediate within theportion of tiers associated in the funding.

In funding an ongoing tier of private constant-dollar financialinstruments by associating it with an other ongoing tier comprised ofconstant-dollar insurance and annuity instruments, the computer of theinsurance company is transforming the liability of a user of funds intoan asset of a supplier of funds using said tiers.

As another possible example of funding involving the association ofongoing tiers, consider a finance company. The one ongoing tier,comprised of instruments that are assets of the finance company, may(depending on the investment guidelines of the finance company) include,but not be limited to, some combination of:

-   -   1. Constant-dollar mortgages.    -   2. Constant-dollar construction loans.    -   3. Constant-dollar residential mortgages, where the mortgage or        deed of trust securing the note is a mortgage or deed of trust        on a 1 to 4 family residential property.    -   4. A constant-dollar reverse loan, especially a constant-dollar        reverse mortgage which enables a consumer to tap the equity in        their residence by receiving payments of constant purchasing        power amounts, with the resulting constant-dollar loan being        repaid through the sale of the residence at some defined point.    -   5. Constant-dollar commercial mortgages, where the mortgage or        deed of trust securing the note is a mortgage or deed of trust        on commercial property including office, retail, industrial,        multi-family residential, and mobile-home properties.    -   6. Constant-dollar second mortgage or home-equity loans.    -   7. Constant-dollar second mortgage or deed-of-trust financing        for commercial properties.    -   8. Constant-dollar personal loans.    -   9. Constant-dollar auto loans.    -   10. Constant-dollar vehicle loans.    -   11. Constant-dollar loans to finance consumer durables.    -   12. Constant-dollar leases.    -   13. Constant-dollar leases to finance automobiles.    -   14. Constant-dollar leases to finance consumer durables.    -   15. Constant-dollar leases to finance boats or ships.    -   16. Constant-dollar leases to finance business property.    -   17. Constant-dollar leases to finance aircraft, aircraft        engines, airframes, combinations thereof, railroad rolling        stock, trucks, buses, trams, trollies or lorries.    -   18. Constant-dollar leases to real property.    -   19. Constant-dollar leveraged-leases where the lessor finances a        large portion of the purchase price of the asset with a        nonrecourse constant-dollar loan that is secured by a first        claim on the leased asset.    -   20. Constant-dollar business loans.    -   21. Constant-dollar term loans.    -   22. Constant-dollar notes.    -   23. Constant-dollar international lending contracts.    -   24. Constant-dollar bonds.    -   25. Constant-dollar fully-amortizing bonds.    -   26. Constant-dollar private placement bonds.    -   27. Constant-dollar public issue bonds.    -   28. Constant-dollar medium-term notes, which are constant-dollar        bonds (that can be of any maturity, in spite of the name) that        are issued on a continuing basis over time rather than through        the batch process of traditional underwriting.    -   29. Constant-dollar debentures.    -   30. Constant-dollar subordinated debentures.    -   31. Constant-dollar capital notes.    -   32. Constant-dollar mortgage bonds.    -   33. Constant-dollar equipment trust certificates.    -   34. Constant-dollar asset-backed securities.    -   35. Constant-dollar mortgage-backed securities.    -   36. Constant-dollar preferred stock.    -   37. Constant-dollar fully-amortizing preferred stock.    -   38. Constant-dollar limited partnership units.    -   39. Constant-dollar preferred-return LLC (Limited Liability        Company) units.    -   40. Constant-dollar income bonds, where the issuing organization        makes the promised real (purchasing power) payment only if it        has income sufficient to make the payment. Payments that are not        paid may cumulate with or without compounding (payment of        interest on interest).

An other ongoing tier, comprised of instruments that are liabilities ofthe finance company, is associated with the one ongoing tier in thefunding of the one ongoing tier by the other ongoing tier. The othertier may include, but not be limited to, some combination of:

-   -   1. Constant-dollar debentures.    -   2. Constant-dollar subordinated debentures.    -   3. Constant-dollar capital notes.    -   4. Constant-dollar asset-backed securities.    -   5. Constant-dollar income bonds.    -   6. Constant-dollar preferred stock.

In the process of funding the one ongoing tier with the other ongoingtier, the finance company may: 1) sell constant-dollar instrumentscomprising the other tier and then purchase and/or originateconstant-dollar instruments comprising the one tier; 2) purchase and/ororiginate constant-dollar instruments comprising the one tier and thensell constant-dollar instruments comprising the other tier; 3)simultaneously sell constant-dollar instruments comprising the othertier and purchase and/or originate constant-dollar instrumentscomprising the one tier; or, 4) practice some combination of thepreceding.

In funding an ongoing tier of private constant-dollar financialinstruments by associating it with an other ongoing tier comprised ofconstant-dollar insurance and annuity instruments, the computer of thefinance company is transforming the liability of a user of funds into anasset of a supplier of funds using said tiers.

FIG. 1 illustrates the simplest embodiment of the present invention, asingle computer system comprised of a computer 14, an input means suchas a keyboard 12, a storage means such as a disk drive 10, and an outputmeans such as a printer 16.

FIG. 1A expands the system 1 to include the possibility of more than onecomputer. The possible computers comprising the system 1 include, butare not limited to, any computer or combination of computers including:a financial intermediary computer 100; a depository institution computer102; a commercial bank computer 104; a credit union computer 106; aninsurance company computer 108; a pension fund computer 110; a financecompany computer 112; a leasing company computer 114; an investmentcompany computer 116; a mutual fund computer 118; a real estateinvestment trust computer 120; a special purpose entity computer 122; areal estate mortgage investment conduit computer 124; a trust computer126; a limited liability company computer 128; a partnership computer130; a corporation computer 132; a servicing computer 134; a reportingcomputer 136; a broker computer 138; a trading computer 140; a clearingcomputer 142; a rating agency computer 144; an investment bankercomputer 146; a mortgage banker computer 148; a user of funds computer150; a supplier of funds computer 152; and an other computer 154.

As represented in FIG. 1A, each said computer can have a correspondinginput means (156) such as a keyboard, a storage means (158) such as adisk drive, and an output means (160) such as a printer, modem, etc.156, 158, and 160 can be viewed, in a sense, as plugging into any of thecomputers, as illustrated in FIG. 1A.

Any computer in the FIGS. 1 and 1A may include one or more input means(12, 156). Possible examples of said input means (12, 156) include, butare not limited to: a keyboard, a scanner, a voice recognition device, aconnection with another computer and/or other digital device, etc. Anycomputer in the FIGS. 1 and 1A may, or may not, employ any input means(12, 156), either individually or in cooperation with another computer.Data may be input into one or more of the computers of FIGS. 1 and 1Ausing one or more input means (12, 156). The input into one or more ofthe computers of the FIGS. 1 and 1A may include one or more softwareprograms, including, but not limited to: a software program stored on adisk, a software program stored on a memory card or stick, a softwareprogram stored on tape, a software program stored in a holographicstorage device, a software program stored on a computer memory device,and/or a software program stored on another computer or other digitaldevice.

Any computer in FIG. 1 and 1A may include one or more storage means (10,158). Possible examples of said storage means (10, 158) include, but arenot limited to: a magnetic disk drive, an optical disk drive, aholographic disk drive, a tape drive, a memory card or stick, dynamicrandom access memory (dynamic RAM), static random access memory (staticRAM), and/or another computer or other such device. Any computer in theFIGS. 1 and 1A may or may not employ more than one of any such storagemeans (10, 158).

Any computer in FIGS. 1 and 1A may include one or more output means (16,160). Possible examples of said output means (16, 160) include, but arenot limited to: a monitor, a printer, a voice synthesizer, a disk drive,a holographic disk drive, and a connection with another computer and/orother device. Any computer in FIGS. 1 and 1A may, or may not, employ anyoutput means (16, 160), either individually or in cooperation withanother computer. Data may be output from one or more of the computersin FIGS. 1 and 1A using one or more output means (16, 160). The outputfrom one or more of the computers as in FIGS. 1 and 1A may include oneor more software programs, including, but not limited to: a softwareprogram stored on a disk, a software program stored on a memory card orstick, a software program stored on tape, a software program stored on aholographic disc drive, and/or a software program transmitted to anothercomputer or other device.

The FIGS. 2, 2A, 2B, 2C, 2D and 2E are flow charts for sampleembodiments of the present invention using fixed tiers. In each case(FIG. 2) the process begins 200 by specifying one or more constantdollar instruments in a fixed tier. The examples of embodimentsinvolving the use of fixed tiers include: constant dollar leveragedlease funding 202; funding a constant dollar instrument by tranchingcash flows 204; and securitizing a tier of constant dollar instrumentscontained in a fixed tier 206.

In the possible example of constant dollar leveraged lease financing,the first step is to specify the constant dollar operating leasecomprising the one tier, including, but not limited to: the asset beingleased; the lessee; the price of the asset; the (tax) depreciationschedule; the expected economic life of the asset; a real lease rate; acurrency; an index; and a frequency of adjustment 208.

The asset being leasing may be an infrastructure asset such as a gaspipeline, a power plant, a railroad line, etc. An ability of constantdollar leveraged lease financing that may be advantageous ininfrastructure finance is that the lessee can use constant dollarleveraged lease financing to unlock the value of capital-intensiveinfrastructure assets and continue to control the assets and profit fromtheir use for as long as the lessee continues to make the fixed reallease payments.

The next step is to use market data, including a real interest rate, tospecify the instruments comprising the other tier, including anonrecourse constant dollar leveraging loan or loans and an equityinvestment by a lessor 210. The nonrecourse leveraging loan or loans maybe in the same currency as the constant-dollar leveraged lease or in adifferent currency. There may be more than one nonrecourse constantdollar leveraging loan in one or more than one currency.

Then the system 1 determines whether the constant dollar lease paymentsare greater than the leveraging constant dollar loan payments 212. Ifthe answer is no, the constant-dollar lease is repriced by changing theprice of the asset and/or the real lease payments 214 and the system 1returns to step 208. If the answer is yes, the system 1 (FIG. 2A)calculates the expected real, after-tax return to the lessor 216.

Next, the system 1 determines 218 whether or not the expected realreturn to the lessor is equal to the required real return. If the answeris no, the system 1 returns to step 214, repricing the constant dollarlease.

If the answer is yes, both tiers are placed into a bankruptcy-remoteentity (a special purpose entity), the constant dollar instruments areconverted into equivalent nominal instruments, and completedocumentation of the funding is prepared by computer and outputted 220.

The final two steps are to close the funding 222 and service theinstruments comprising each tier 224.

In the example of funding a constant dollar instrument by tranching cashflows 204, the first step (FIG. 2B) is to specify the constant dollarinstrument that is to be tranched, which comprises the one tier,including the real cash flows, currency, index and frequency ofadjustment 230.

The next step is to specify constant dollar instruments comprising another tier, said constant dollar instruments having varying maturities,by associating the cash flows of the one tier with the other tier 232.

The system 1 then determines if the cash flows of the one tier are notless than the cash flows of the other tier 236. If the answer is no, thesystem 1 revises the specification of the constant dollar instrumentscomprising the other tier 238 by revisiting the step of associating thecash flows of the one tier with the other 232. If the answer is yes, thesystem 1 uses market data, including real interest rates for differentmaturities, to price each constant dollar instrument in the other tierand the constant dollar instrument comprising the one tier 240.

The system 1 then (FIG. 2C) then calculates the net total sales price ofthe constant dollar instruments that comprise the other tier and thepurchase cost of the constant dollar instrument that comprises the onetier 242.

The next step is determine if the net total sales price is greater thanthe purchase cost 244. The purchase cost may include charges for timeand resources expended by investment banker or other entity performingthe funding.

If the answer is no, the tranching is not a cost effective and thefunding does not proceed 246. If the answer is no, the system 1 proceedsto step 220.

In the example of securitizing constant dollar instruments contained ina fixed tier 206, the first step (FIG. 2D) is to specify constant dollarinstruments that are to purchased or originated and will comprise theone tier, including the type or types of instruments, maturities, creditquality, amounts, cash flows, real interest rate, etc. 260.

The system 1 then aggregates the cash flows of the constant dollarinstruments that comprise the one tier 262. The next step is to specifyhomogeneous constant dollar securities with differing claims prioritiesand maturities by splitting the aggregate cash flows of the one tier byclaims priorities and maturities, and place these constant dollarsecurities in an other tier 264.

The next step is to use market data, including real interest rates fordifferent maturities and risk classes, to price the constant dollarsecurities in the other tier and to determine the size and cash flows ofthe equity/high yield remainder piece in the other tier 266.

The system 1 then determines the expected real return and risk of theequity/high yield piece in the other tier 268. The next step is todetermine whether the return on the equity/high yield piece issatisfactory relative to risk 270. If the answer is no, then the system1 adjusts the real returns of the constant dollar instruments that areto be purchased or originated 272 and the system 1 returns to step 262.If the answer is yes, the system 1 converts the constant dollarinstruments to equivalent nominal instruments 274. If desired, the valueof the constant dollar instruments to be purchased or securitized may behedged 276.

The final steps are to purchase or originate the constant dollarinstruments to be securitized 278; place both tiers in abankruptcy-remote entity (a special purpose entity) and output completedocumentation of the funding 280; close the funding by sellingsecurities that comprise the other (funding) tier 282; and service theinstruments comprising each tier 284.

The FIGS. 3 and 3A are flow charts for a sample embodiment of theinvention using ongoing tiers.

The first step (FIG. 3) is to specify a financial intermediary, such asa finance company, insurance company or depository institution that willassociate the ongoing tiers to implement the funding 300.

The next step is to jointly specify: 1) the constant dollar instrumentsthat are to be purchased and/or originated and contained in the oneongoing tier, including the types of instruments, credit quality andterms 302; and, 2) the constant dollar instrument that are to be issuedand contained in the other tier, including the type of instruments andterms 304.

Then the system 1 determines the size of the equity capital piece to becontained in the other (funding) tier 306. Next, the system 1 usesmarket data, including real interest rates, to calculate the expectedreal return on the equity capital piece 308.

The next step is to determine if the expected real return on the equitypiece is satisfactory 310. If the answer is no, modify thespecifications of the constant dollar instruments contained in any ofthe tiers 312 and proceed to step 306. If the yes, the system 1 (FIG.3A) converts the constant dollar instruments into equivalent nominalinstruments and generates complete documentation of the funding 314. Thefinancial intermediary then implements the funding by purchasing and/ororiginating the constant dollar instruments comprising the one tier andselling instruments comprising the other (funding) tier 316.

The system 1 services the instruments comprising each tier 318. Updatedmarket data, including real interest rates 320 and the system 1 proceedsto step 308 creating an ongoing cycle.

1. A method using an apparatus, the method including the step of:associating, with a computer system using input data, a first tier ofone or more constant dollar financial instruments that do not finance atransaction and a second tier of one or more constant dollar financialinstruments financed by the first tier that do finance the transaction,in producing output to implement the transaction.
 2. The method of claim1, wherein the associating is carried out without a federal constantdollar instrument in the tiers.
 3. The method of claim 1, furtherincluding the step of: computing a constant dollar to nominal dollarconversion corresponding to at least one of the constant dollarinstruments.
 4. The method of claim 3, wherein the associating iscarried out with said constant dollar financial instruments being assetsand liabilities respectively of a tax-free pass-through entity.
 5. Themethod of claim 3, wherein the associating is carried out with saidconstant dollar financial instruments being assets and liabilitiesrespectively of a corporation.
 6. The method of claim 3, wherein theassociating is carried out with said constant dollar financialinstruments being assets and liabilities respectively of a limitedliability company.
 7. The method of claim 3, wherein the associating iscarried out with said constant dollar financial instruments being assetsand liabilities respectively of a real estate mortgage investmentconduit.
 8. The method of claim 3, wherein the associating is carriedout with said constant dollar financial instruments being assets andliabilities respectively of a trust.
 9. The method of claim 3, whereinthe associating is carried out with said constant dollar financialinstruments being assets and liabilities respectively of an investmentcompany.
 10. The method of claim 3, wherein the associating is carriedout with said constant dollar financial instruments being assets andliabilities respectively of a mutual fund.
 11. The method of claim 3,wherein the associating is carried out with said constant dollarfinancial instruments being assets and liabilities respectively of adepository institution.
 12. The method of claim 3, wherein theassociating is carried out with said constant dollar financialinstruments being assets and liabilities respectively of an insurancecompany.
 13. The method of claim 3, wherein the associating is carriedout with said constant dollar financial instruments being assets andliabilities respectively of a limited partnership.
 14. The method ofclaim 3, wherein the associating is carried out with said constantdollar financial instruments being assets and liabilities respectivelyof a real estate investment trust.
 15. The method of claim 3, furtherincluding computing to produce the first tiers, completed prior tocommencing computing to produce the second tier.
 16. The method of claim3, further including computing to produce the second tier, completedprior to commencing computing to produce the second tier.
 17. The methodof claim 1, further including: determining that a real interest rate ofthe first tier is not less than a real interest rate of the second tier.18. The method of claim 17, further including converting any of saidconstant dollar instruments into an equivalent nominal dollarinstrument.
 19. The method of claim 17, wherein the step of producingincludes generating investment banking documentation corresponding tothe transaction.
 20. The method of claim 17, wherein the step ofproducing includes generating financial reporting corresponding to oneof the instruments.
 21. The method of claim 17, wherein the step ofproducing includes generating a rating for one of the instruments. 22.The method of claim 17, wherein the step of producing includesgenerating documentation of a trade of one of the instruments.
 23. Themethod of claim 17, wherein the step of producing includes generatingdocumentation of a brokerage transaction of one of the instruments. 24.The method of claim 17, wherein the step of producing includesgenerating investor documentation corresponding to one of theinstruments.
 25. The method of claim 17, wherein the step of producingincludes generating investment manager documentation corresponding toone of the instruments.
 26. The method of claim 17, wherein the step ofproducing includes generating investment fund documentationcorresponding to one of the instruments.
 27. The method of claim 17,wherein the step of producing includes generating investment advisordocumentation corresponding to one of the instruments.
 28. The method ofclaim 17, wherein the step of producing includes generating insurancedocumentation corresponding to one of the instruments.
 29. The method ofclaim 17, wherein the step of producing includes generating bankingdocumentation corresponding to the transaction.
 30. The method of claim17, wherein the step of producing includes generating servicingdocumentation corresponding to one of the instruments.
 31. The method ofclaim 17, wherein the step of producing includes generating issuerdocumentation corresponding to one of the instruments.
 32. The method ofclaim 17, wherein the step of producing includes generating issueraccounting documentation corresponding to one of the instruments. 33.The method of claim 17, wherein the step of producing includesgenerating investor accounting documentation corresponding to one of theinstruments.
 34. The method of claim 17, wherein the step of producingincludes generating clearing documentation corresponding to one of theinstruments.
 35. The method of claim 17, wherein the step of producingincludes generating mortgage broker documentation corresponding to oneof the instruments.
 36. The method of claim 3, wherein the producing iscarried out with the transaction being a leveraged-lease transaction.37. The method of claim 3, wherein the producing is carried out with thetransaction being a lease transaction.
 38. The method of claim 3,wherein the producing is carried out with the transaction being atax-exempt bond transaction.
 39. The method of claim 3, wherein theproducing is carried out with the transaction being a residentialmortgage transaction.
 40. The method of claim 3, wherein the producingis carried out with the transaction being a commercial mortgagetransaction.
 41. The method of claim 3, wherein the producing is carriedout with the transaction being a business financing transaction.
 42. Themethod of claim 3, wherein the producing is carried out with thetransaction being a consumer financing transaction.
 43. A computerapparatus using tiered constant dollar instruments to support finance ofa transaction, the apparatus comprising: at least one computerrespectively programmed to carry out the steps of: computing, usinginput data, to associate a first tier of one or more constant dollarfinancial instruments that do not finance a transaction and a secondtier of one or more constant dollar financial instruments financed bythe first tier to finance the transaction, in producing output toimplement the transaction.
 44. The apparatus of claim 43, wherein thecomputing is carried out without a federal constant dollar instrument inthe tiers.
 45. The apparatus of claim 43, further including computing aconstant dollar to nominal dollar conversion corresponding to at leastone of the constant dollar instruments.
 46. The apparatus of claim 45,wherein said computing step is carried out with said constant dollarfinancial instruments being assets and liabilities respectively of atax-free pass-through entity.
 47. The apparatus of claim 45, whereinsaid computing step is carried out with said constant dollar financialinstruments being assets and liabilities respectively of a corporation.48. The apparatus of claim 45, wherein said computing step is carriedout with said constant dollar financial instruments being assets andliabilities respectively of a limited liability company.
 49. Theapparatus of claim 45, wherein said computing step is carried out withsaid constant dollar financial instruments being assets and liabilitiesrespectively of a real estate mortgage investment conduit.
 50. Theapparatus of claim 45, wherein said computing step is carried out withsaid constant dollar financial instruments being assets and liabilitiesrespectively of a trust.
 51. The apparatus of claim 45, wherein saidcomputing step is carried out with said constant dollar financialinstruments being assets and liabilities respectively of an investmentcompany.
 52. The apparatus of claim 45, wherein said computing step iscarried out with said constant dollar financial instruments being assetsand liabilities respectively of a mutual fund.
 53. The apparatus ofclaim 45, wherein said computing step is carried out with said constantdollar financial instruments being assets and liabilities respectivelyof a depository institution.
 54. The apparatus of claim 45, wherein saidcomputing step is carried out with said constant dollar financialinstruments being assets and liabilities respectively of an insurancecompany.
 55. The apparatus of claim 45, wherein said computing step iscarried out with said constant dollar financial instruments being assetsand liabilities respectively of a limited partnership.
 56. The apparatusof claim 45, wherein said computing step is carried out with saidconstant dollar financial instruments being assets and liabilitiesrespectively of a real estate investment trust.
 57. The apparatus ofclaim 45, wherein said step of computing is carried out with said tiersbeing open-ended tiers.
 58. The apparatus of claim 45, wherein said stepof computing is carried out with said tiers being fixed tiers.
 59. Theapparatus of claim 45, wherein said at least one computer comprises morethan one computer, the computers cooperating in computing a constantdollar to nominal dollar conversion corresponding to one of the constantdollar instruments; and wherein said computers are controlled togenerate different outputs.
 60. The apparatus of claim 59, wherein thestep of producing includes generating one of said instruments with oneof said computers as one of said outputs.
 61. The apparatus of claim 59,wherein the step of producing includes generating investment bankingdocumentation corresponding to the transaction with one of saidcomputers as one of said outputs.
 62. The apparatus of claim 59, whereinthe step of producing includes generating financial reportingcorresponding to one of the instruments with one of said computers asone of said outputs.
 63. The apparatus of claim 59, wherein the step ofproducing includes generating a rating for one of the instruments withone of said computers as one of said outputs.
 64. The apparatus of claim59, wherein the step of producing includes generating documentation of atrade of one of the instruments, the trade carried out by one of saidcomputers, as one of said outputs.
 65. The apparatus of claim 59,wherein the step of producing includes generating documentation of abrokerage transaction of one of the instruments, the brokeragetransaction carried out by one of said computers, as one of saidoutputs.
 66. The apparatus of claim 59, wherein the step of producingincludes generating investor documentation corresponding to one of theinstruments as one of said outputs.
 67. The apparatus of claim 59,wherein the step of producing includes generating investment managerdocumentation corresponding to one of the instruments as one of saidoutputs.
 68. The apparatus of claim 59, wherein the step of producingincludes generating investment fund documentation corresponding to oneof the instruments as one of said outputs.
 69. The apparatus of claim59, wherein the step of producing includes generating investment advisordocumentation corresponding to one of the instruments as one of saidoutputs.
 70. The apparatus of claim 59, wherein the step of producingincludes generating insurance documentation corresponding to one of theinstruments as one of said outputs.
 71. The apparatus of claim 59,wherein the step of producing includes generating banking documentationcorresponding to the financial product as one of said outputs.
 72. Theapparatus of claim 59, wherein the step of producing includes generatingservicing-documentation corresponding to one of the instruments as oneof said outputs.
 73. The apparatus of claim 59, wherein the step ofproducing includes generating issuer documentation corresponding to oneof the instruments as one of said outputs.
 74. The apparatus of claim59, wherein the step of producing includes generating issuer accountingdocumentation corresponding to one of the instruments as one of saidoutputs.
 75. The apparatus of claim 59, wherein the step of producingincludes generating investor accounting documentation corresponding toone of the instruments as one of said outputs.
 76. The apparatus ofclaim 59, wherein the step of producing includes generating clearingdocumentation corresponding to one of the instruments as one of saidoutputs.
 77. The apparatus of claim 59, wherein the step of producingincludes generating mortgage broker documentation corresponding to oneof the instruments as one of said outputs.
 78. The apparatus of claim45, wherein the producing is carried out with the transaction being aleveraged-lease transaction.
 79. The apparatus of claim 45, wherein theproducing is carried out with the transaction being a lease transaction.80. The apparatus of claim 45, wherein the producing is carried out withthe transaction being a tax-exempt bond transaction.
 81. The apparatusof claim 45, wherein the producing is carried out with the transactionbeing a residential mortgage transaction.
 82. The apparatus of claim 45,wherein the producing is carried out with the transaction being acommercial mortgage transaction.
 83. The apparatus of claim 45, whereinthe producing is carried out with the transaction being a businessfinancing transaction.
 84. The apparatus of claim 45, wherein theproducing is carried out with the transaction being a consumer financingtransaction.
 85. The apparatus of anyone of claims 45-84, wherein saidat least one computer comprises more than one computer cooperating tosupport said transaction.
 86. A computer apparatus using tiered constantdollar instruments to support finance of a transaction, the apparatuscomprising: at least one computer means for carrying out the steps of:computing, using input data, to produce a first tier of one or moreconstant dollar financial instruments that do not finance thetransaction; and computing, using input data, to produce a second tierof one or more constant dollar financial instruments financed by thefirst tier to finance the transaction.
 87. The apparatus of claim 86,wherein at least one of said steps is carried out without a federalconstant dollar instrument.
 88. The apparatus of claim 86, wherein saidcomputer means is comprised of means for computing a constant dollar tonominal dollar conversion corresponding to one of the constant dollarinstruments.
 89. The apparatus of claim 86, wherein said computing stepsare carried out with said constant dollar financial instruments beingassets and liabilities respectively of a tax-free pass-through entity.90. The apparatus of claim 86, wherein said computing steps are carriedout with said constant dollar financial instruments being assets andliabilities respectively of a corporation.
 91. The apparatus of claim86, wherein said computing steps are carried out with said constantdollar financial instruments being assets and liabilities respectivelyof a limited liability company.
 92. The apparatus of claim 86, whereinsaid computing steps are carried out with said constant dollar financialinstruments being assets and liabilities respectively of a real estatemortgage investment conduit.
 93. The apparatus of claim 86, wherein saidcomputing steps are carried out with said constant dollar financialinstruments being assets and liabilities respectively of a trust. 94.The apparatus of claim 86, wherein said computing steps are carried outwith said constant dollar financial instruments being assets andliabilities respectively of an investment company.
 95. The apparatus ofclaim 86, wherein said computing steps are carried out with saidconstant dollar financial instruments being assets and liabilitiesrespectively of a mutual fund.
 96. The apparatus of claim 86, whereinsaid computing steps are carried out with said constant dollar financialinstruments being assets and liabilities respectively of a depositoryinstitution.
 97. The apparatus of claim 86, wherein said computing stepsare carried out with said constant dollar financial instruments beingassets and liabilities respectively of an insurance company.
 98. Theapparatus of claim 86, wherein said computing steps are carried out withsaid constant dollar financial instruments being assets and liabilitiesrespectively of a limited partnership.
 99. The apparatus of claim 86,wherein said computing steps are carried out with said constant dollarfinancial instruments being assets and liabilities respectively of areal estate investment trust.
 100. The apparatus of claim 86, whereinsaid computer means computes to produce the first tier prior tocommencing computing to produce the second tier.
 101. The apparatus ofclaim 86, wherein said computer means computes to produce the secondtier prior to commencing the step of computing to produce the firsttier.
 102. The apparatus of claim 86, wherein said computer meansgenerates one of said instruments.
 103. The apparatus of claim 86,wherein said computer means generates investment banking documentationcorresponding to the transaction.
 104. The apparatus of claim 86,wherein said computer means generates financial reporting correspondingto one of the instruments.
 105. The apparatus of claim 86, wherein saidcomputer means generates a rating for one of the instruments.
 106. Theapparatus of claim 86, wherein said computer means generatesdocumentation of a trade of one of the instruments.
 107. The apparatusof claim 86, wherein said computer means generates documentation of abrokerage transaction of one of the instruments.
 108. The apparatus ofclaim 86, wherein said computer means generates investor documentationcorresponding to one of the instruments.
 109. The apparatus of claim 86,investment manager documentation corresponding to one of theinstruments.
 110. The apparatus of claim 86, investment funddocumentation corresponding to one of the instruments.
 111. Theapparatus of claim 86, wherein said computer means generates investmentadvisor documentation corresponding to one of the instruments.
 112. Theapparatus of claim 86, wherein said computer means generates insurancedocumentation corresponding to one of the instruments.
 113. Theapparatus of claim 86, wherein said computer means generates bankingdocumentation corresponding to one of the instruments.
 114. Theapparatus of claim 86, wherein said computer means generates servicingdocumentation corresponding to one of the instruments.
 115. Theapparatus of claim 86, wherein said computer means generates issuerdocumentation corresponding to one of the instruments.
 116. Theapparatus of claim 86, wherein said computer means generates issueraccounting documentation corresponding to one of the instruments. 117.The apparatus of claim 86, wherein said computer means generatesinvestor accounting documentation corresponding to one of theinstruments.
 118. The apparatus of claim 86, wherein said computer meansgenerates clearing documentation corresponding to one of theinstruments.
 119. The apparatus of claim 86, wherein said computer meansgenerates mortgage broker documentation corresponding to one of theinstruments.
 120. The apparatus of claim 86, wherein one of thecomputing steps is carried out with the transaction being aleveraged-lease transaction.
 121. The apparatus of claim 86, wherein oneof the computing steps is carried out with the transaction being a leasetransaction.
 122. The apparatus of claim 86, wherein one of thecomputing steps is carried out with the transaction being a mortgagetransaction.
 123. The apparatus of claim 86, wherein one of thecomputing steps is carried out with the transaction being a residentialmortgage transaction.
 124. The apparatus of claim 86, wherein one of thecomputing steps is carried out with the transaction being a commercialmortgage transaction.
 125. The apparatus of claim 86, wherein one of thecomputing steps is carried out with the transaction being a businessfinancing transaction.
 126. The apparatus of claim 86, wherein one ofthe computing steps is carried out with the transaction being a consumerfinancing transaction.
 127. The apparatus of any one of claims 86-126,wherein one computer of said computer means communicates with anothercomputer of said computer means to support said transaction.
 128. Amethod of using an apparatus, the method including: computing, with acomputer using input data, to associate cash flow of a first tier of oneor more constant dollar financial instruments that do not finance thetransaction and cash flow of a second tier of one or more constantdollar financial instruments financed by the first tier to finance thetransaction, in making respective instrument documentation.
 129. Themethod of claim 128, further communicating from the computer to an othercomputer in carrying out the transaction, the other computer comprisinga financial intermediary computer, a depository institution computer, acommercial bank computer, a credit union computer, an insurance companycomputer, a pension fund computer, a finance company computer, a leasingcompany computer, an investment company computer, a mutual fundcomputer, a real estate investment trust computer, a special purposeentity computer, a real estate mortgage investment conduit computer, atrust computer, a limited liability company computer, a partnershipcomputer, a corporation computer, a servicing computer, a reportingcomputer, a broker computer, a trading computer, a clearing computer, arating agency computer, an investment banker computer, a mortgage bankercomputer, a user of funds computer, a supplier of funds computer, and another computer.
 130. The method of claim 129, wherein the tiers aredevoid of a federal constant dollar instrument.
 131. The method of claim130, wherein further including computing a constant dollar to nominaldollar conversion corresponding to one of the constant dollarinstruments.
 132. The apparatus of any one of claims 43-84, wherein thecomputer system comprises multiple computers cooperating to carry outservicing of any instrument in the tiers.
 133. The apparatus of any oneof claims 43-84, wherein the computer system computes to output that areal interest rate of the first tier is not less than a real interestrate of the second tier.